The accounting firm has released its analysis of the Federal Budget – and they have spotted an issue with the $1.6 billion in new packages announced by the Government.

Check out the table above.

As you can see, the majority of these packages (8,000) each have been allocated to Level 2 and 3 packages. Another 5,000 packages are Level 1 compared to just 2,000 Level 4 packages.

The $1.6 billion to fund the packages is also divided over four years – so only amounts to $400 million a year.

These packages – to be rolled out in November 2020 – come on top of the 6,105 Level 1, 2 and 3 packages that the Government released in July.

There is an argument that previous releases of HCPs had been tipped towards the higher-level packages – and this is an attempt to ‘rebalance’ the system.

But there is no doubt that the need is concentrated in the higher Level 3 and 4 packages – and even higher.

StewartBrown is arguing for the number of package levels to be increased to ensure more people are funded equitably.

“Additional reform should also include increasing the number of package levels (currently four) to at least six to have a much lower incremental gap in funding between each level, which will allow the funding to equate to assessed need,” they state.

If the Government’s home care in arrears arrangements are passed in Parliament (see here), the Government could re-direct the cash from unspent funds to fund more higher-level packages.

But with less liquidity available, some home care providers could find themselves facing insolvency.

Even with more potential clients, more closures may be on the cards.